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Price Competition in Tourism Supply Chain with Hotels and Travel Agency

In: Ltlgb 2012

Author

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  • Yun Huang

    (Macau University of Science and Technology)

Abstract

Tourism was considered a “smokeless industry”, depending on using and developing the natural and cultural resources of a country to attract visitors. This paper studies the impact of different power structures on the room rates decisions in a tourism supply chain with two hotels, one luxury and the other economic, and one travel agency. Stackelberg game and Nash game models are formulated to analyze the pricing decisions in the power structures. We conduct comparative study between the three structures and explore the effects of different parameters on equilibrium prices, demands and profits.

Suggested Citation

  • Yun Huang, 2013. "Price Competition in Tourism Supply Chain with Hotels and Travel Agency," Springer Books, in: Feng Chen & Yisheng Liu & Guowei Hua (ed.), Ltlgb 2012, edition 127, chapter 0, pages 489-495, Springer.
  • Handle: RePEc:spr:sprchp:978-3-642-34651-4_69
    DOI: 10.1007/978-3-642-34651-4_69
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    Cited by:

    1. Xiangping Wang & Ivan Kai Wai Lai & Huajun Tang & Chuan Pang, 2022. "Coordination Analysis of Sustainable Dual-Channel Tourism Supply Chain with the Consideration of the Effect of Service Quality," Sustainability, MDPI, vol. 14(11), pages 1-24, May.
    2. Sarat Kumar Jena & Deepti Jog, 2017. "Price competition in a tourism supply chain," Tourism Economics, , vol. 23(6), pages 1235-1254, September.

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